338 PUBLIC LAWS-CH. 258-JULY 16, 1947 [61 STAT. and regulations which the Commissioners are hereby authorized to promulgate. The basis upon which such allowances are to be com- PoF,p 361. puted is the basis provided for in title XI, section 6, of this article. (8) CHARITABLE CONTRIBuTIONS. - Contributions or gifts, actually paid within the taxable year to or for the use of any religious, char- itable, scientific, literary, military, or educational institution, the activities of which are carried on to a substantial extent in the Dis- trict, and no part of the net income of which inures to the benefit of Limitatio, any private shareholder or individual: Provided, however, That such deductions shall be allowed only in an amount which in the aggregate of all such deductions does not exceed 15 per centum of net income as computed without the benefit of this subsection. (9) MEDICAL, DENTAL, AND SO FORTH, EXPENSES OF INDIVIDUALS.- Expenses in the case of residents, paid by the taxpayer during the taxable year, not compensated for by insurance or otherwise, for the medical care of the taxpayer, his spouse, or dependents as defined in "Medical c. this article. The term "medical care", as used in this subsection, shall include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of diseases, or for the purpose of effecting healthier func- tion of the body (including amounts paid for accident or health insur- Dductions. ance): Provided, however, That a taxpayer may deduct only such expenses as exceed 5 per centum of his net income, or 5 per centum of the aggregate net income in the case of husband and wife filing a joint return, computed with the benefit of subsection (8) of this section but without the benefit of this subsection: And provided further, That the maximum deduction for the taxable year shall not exceed $2,500 in the case of a husband and wife filing a joint return, or $1,250 in the case of all other residents. (10) ALIMONY OR SEPARATE MAINTENANCE--In the case of residents, amounts paid as alimony or separate maintenance pursuant to and under a decree or judgment of a court of record of competent jurisdic- tion to adjudge or decree that the taxpayer pay such alimony or sepa- Income of recipient. rate maintenance: Provided, however That all amounts allowed as a deduction under this subsection shall be reported and taxed as income of the recipient thereof if such recipient is a resident as defined in this article. (11) CONTRIBUTIONS OF AN EMPLOYER TO AN EMPLOYEES' TRUST OR ANNUITY PLAN AND COMPENSATION UNDER A DEFERRED-PAYMENT PLAN .- In the return of an employer, contributions made by such employer to an employees' trust or annuity plan and compensation under a deferred- payment plan to the extent that deductions for the same are allowed the taxpayer under the provisions of section 23 (p) of the Federal staat. 15. Internal Revenue Code. ,Js.s c . i 23(p). (12) NONTRADE OR NONBUSINESS EXPENSE. -In the case of an indi- vidual, all the ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income, or for the management, conservation, or maintenance of property held for the production of income taxable under this article. Optionl standad ( 13) In lieu of the foregoing deductions, any resident, whose gross income less allowance for dependents is $5,000 or more may irrevocably elect to deduct for the taxable year an optional standard deduction of Restriction. $500: Provided,however, That the option provided in this subsection shall not be permitted to any such taxpayer on any return filed by him for any period less than a full calendar or fiscal year: And pro- Hosband and wi f e vided further, That in the case of husband and wife living together, the standard deduction shall not be allowed to either if the net income of one of the spouses is determined without regard to the standard deduction or by use of the optional method provided in title VI, section aWe 3 >4 (a).